Canadian Natural (CNQ) AI Stock Analysis

• Market Cap: $82.46B
• Dividend Yield: 5.49%
• Average Volume (3M): 13.12M
• Price to Earnings (P/E): 13.5
• Beta (1Y): 1.04
• Revenue Growth: -0.87%
• EPS Growth: -23.92%
• Country: CA
• Employees: 10,640
• Sector: Energy
• Sector Strength: 43
• Industry: Oil & Gas Exploration & Production
• EPS (TTM): 1.16
• Shares Outstanding: 2,099,250,200
• 10 Day Avg. Volume: 6,476,851
• 30 Day Avg. Volume: 13,117,574
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $49.17
• Price Target Upside: 17.57% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 10

Canadian Natural Resources demonstrates robust financial performance, supported by strong cash flow and profitability metrics. The earnings call underscored record production and strategic cost efficiencies, leading to an optimistic outlook. The stock's valuation, including an attractive dividend yield, complements its financial strengths. However, technical analysis indicates limited short-term momentum, which investors should monitor. Overall, the stock holds a solid position for long-term growth, balanced by careful attention to operational challenges and market conditions.

Positive Factors

Debt Management

The company decreased its net debt by approximately $1.4 billion, which is seen positively by investors.

Financial Performance

Canadian Natural Resources posted higher cash flow per share than expected due to increased production, strong realizations, and lower operating expenses.

Negative Factors

Market Outlook

The price target for CNQ has been reduced due to rising royalties.

Trade Uncertainty

There is uncertainty around tariffs, but CNQ management expects some costs to be absorbed by the US consumer.

Canadian Natural Business Overview & Revenue Model

Company Description

Canadian Natural Resources Limited acquires, explores for, develops, produces, markets, and sells crude oil, natural gas, and natural gas liquids (NGLs). The company offers synthetic crude oil (SCO), light and medium crude oil, bitumen (thermal oil), primary heavy crude oil, and Pelican Lake heavy crude oil. Its midstream and refining assets include two crude oil pipeline systems; and a 50% working interest in an 84-megawatt cogeneration plant at Primrose. As of December 31, 2020, the company had total proved crude oil, bitumen, and NGLs reserves were 10,528 million barrels (MMbbl); total proved plus probable crude oil, bitumen, and NGLs reserves were 13,271 MMbbl; proved SCO reserves were 6,998 MMbbl; total proved plus probable SCO reserves were 7,535 MMbbl; proved natural gas reserves were 12,168 billion cubic feet (Bcf); and total proved plus probable natural gas reserves were 20,249 Bcf. It operates primarily in Western Canada; the United Kingdom portion of the North Sea; and Offshore Africa. The company was formerly known as AEX Minerals Corporation and changed its name to Canadian Natural Resources Limited in December 1975. Canadian Natural Resources Limited was incorporated in 1973 and is headquartered in Calgary, Canada.

How the Company Makes Money

Canadian Natural makes money primarily through the exploration, development, and production of crude oil and natural gas. Its key revenue streams include the sale of these commodities in domestic and international markets. The company operates a diversified asset base with significant production from oil sands mining, thermal in situ production, and conventional oil and gas operations. Canadian Natural benefits from economies of scale, operational efficiency, and a flexible capital allocation strategy that allows it to optimize production and navigate market fluctuations. Additionally, the company engages in strategic partnerships and joint ventures, contributing to its earnings and providing opportunities for growth and development in the energy sector.

Canadian Natural Financial Statement Overview

Summary

Canadian Natural exhibits strong profitability and cash flow generation, supported by a solid balance sheet. High margins and effective cash management are notable strengths, though revenue growth challenges and increasing debt levels require strategic attention.

Income Statement

Canadian Natural's income statement demonstrates strong profitability with a gross profit margin of 49.29% and a net profit margin of 17.12% for 2024. However, the revenue growth rate has been negative at -0.87% from 2023 to 2024, reflecting challenges in revenue expansion. The EBIT margin is robust at 47.13%, indicating efficient operational management. Overall, while profitability remains high, the company faces pressure on revenue growth.

Balance Sheet

The balance sheet shows a strong equity base with an equity ratio of 46.23% for 2024, signifying financial stability. The debt-to-equity ratio stands at 0.51, indicating a moderate level of leverage. Return on equity is solid at 15.47%, reflecting effective use of equity capital. However, the rise in total debt over the years requires careful monitoring.

Cash Flow

Cash flows are healthy with a free cash flow growth rate of 7.52% from 2023 to 2024. The operating cash flow to net income ratio is 2.19, demonstrating strong cash generation relative to earnings. The free cash flow to net income ratio is 1.31, indicating efficient cash management. Despite these strengths, the company should remain vigilant about capital expenditures impacting free cash flow.

Breakdown
Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
35.66B	35.97B	49.53B	32.85B	17.49B
	Gross Profit
17.58B	11.41B	16.26B	10.58B	69.00M
	EBIT
16.80B	10.46B	14.76B	9.51B	-445.00M
	EBITDA
16.27B	17.64B	22.01B	16.16B	6.13B
	Net Income Common Stockholders
6.11B	8.23B	10.94B	7.66B	-435.00M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
131.00M	1.40B	1.41B	1.05B	489.00M
	Total Assets
85.36B	75.95B	76.14B	76.67B	75.28B
	Total Debt
20.28B	12.35B	11.45B	14.69B	21.45B
	Net Debt
20.15B	11.48B	10.53B	13.95B	21.27B
	Total Liabilities
45.89B	36.12B	37.97B	39.72B	42.90B
	Stockholders Equity
39.47B	39.83B	38.17B	36.95B	32.38B
Cash Flow		Free Cash Flow
8.00B	7.44B	14.29B	9.99B	2.16B
	Operating Cash Flow
13.39B	12.35B	19.39B	14.48B	4.71B
	Investing Cash Flow
-14.10B	-4.86B	-4.99B	-3.70B	-2.82B
	Financing Cash Flow
-37.00M	-7.54B	-14.23B	-10.21B	-1.85B

Canadian Natural Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 41.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For TSE:CNQ, the sentiment is Positive. The current price of 41.82 is above the 20-day moving average (MA) of 39.59, above the 50-day MA of 40.74, and below the 200-day MA of 44.12, indicating a neutral trend. The MACD of -0.17 indicates Negative momentum. The RSI at 57.27 is Neutral, neither overbought nor oversold. The STOCH value of 55.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for TSE:CNQ.

Canadian Natural Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CNQ	80 Outperform	$82.46B	13.46	15.47%	5.49%	-0.87%	-23.92%
TOU	73 Outperform	C$23.04B	17.09	8.35%	2.39%	-8.29%	-30.52%
Sector *	56 Neutral	$6.91B	3.46	-4.86%	5.95%	0.08%	-49.21%

Canadian Natural Corporate Events

Canadian Natural Reports Record Q1 2025 Production and Financial Gains

Canadian Natural Resources Limited reported record production levels in the first quarter of 2025, achieving approximately 1,582,000 BOE/d, with significant contributions from both liquids and natural gas. The company also announced a reduction in its 2025 capital budget by $100 million without impacting its planned operations, highlighting its focus on cost efficiencies and shareholder value. Financially, the company achieved strong results with adjusted net earnings of $2.4 billion and returned $1.7 billion to shareholders. The company continues to strengthen its balance sheet and maintain a robust business model with a low breakeven point, ensuring sustainable operations and competitive advantages.

Spark’s Take on TSE:CNQ Stock

According to Spark, TipRanks’ AI Analyst, TSE:CNQ is a Outperform.

Canadian Natural’s stock is supported by strong financial performance and strategic corporate actions. Despite technical analysis showing limited short-term momentum, the company’s attractive valuation and positive earnings call sentiment contribute to a solid overall score.

To see Spark’s full report on TSE:CNQ stock, click here.

Canadian Natural Resources Declares Increased Quarterly Dividend

Canadian Natural Resources Limited has announced a quarterly cash dividend of C$0.5875 per common share, payable on July 3, 2025, to shareholders of record as of June 13, 2025. This marks the 25th consecutive year of dividend increases, reflecting the company’s confidence in its sustainable business model, strong balance sheet, and robust asset base.

Spark’s Take on TSE:CNQ Stock

According to Spark, TipRanks’ AI Analyst, TSE:CNQ is a Outperform.

Canadian Natural’s stock is supported by strong financial performance and strategic corporate actions. Despite technical analysis showing limited short-term momentum, the company’s attractive valuation and positive earnings call sentiment contribute to a solid overall score.

To see Spark’s full report on TSE:CNQ stock, click here.

Canadian Natural Resources Amends Stock Option Plan

Canadian Natural Resources Limited has amended its Stock Option Plan to require shareholder approval for any amendments to the plan’s provisions. This amendment aligns with Institutional Shareholder Services’ policies and will be voted on at the upcoming annual and special meeting of shareholders, potentially impacting shareholder engagement and governance practices.

Spark’s Take on TSE:CNQ Stock

According to Spark, TipRanks’ AI Analyst, TSE:CNQ is a Outperform.

Canadian Natural’s strong financial performance and attractive valuation, combined with positive technical indicators, contribute to a high overall score. Record production, strategic acquisitions, and shareholder returns are significant strengths, while challenges such as revenue growth and natural gas production stagnation are minor concerns.

To see Spark’s full report on TSE:CNQ stock, click here.

Canadian Natural Announces Share Repurchase Plan

Canadian Natural Resources Limited has announced a Normal Course Issuer Bid (NCIB) approved by the Toronto Stock Exchange, allowing the company to repurchase up to 178,738,237 shares over a 12-month period starting March 13, 2025. This move is part of Canadian Natural’s strategy to manage free cash flow allocation, with a focus on shareholder returns and maintaining a strong balance sheet. The company plans to implement an automatic share purchase plan to facilitate these repurchases, even during blackout periods, highlighting its commitment to enhancing shareholder value.